Dealer markups drove me to buy a Tesla

[zarrack007]

The traditional dealer network charging insane EV markups is driving consumers to Tesla. I have been shopping for an Ioniq 5 and then RAV 4 Prime only to find all the dealers charging anywhere from $5K to $10 over MSRP. I also complained to Hyundai corporate but they don't seem to care My primary reason was the price point as I wanted to be below $45K (w/ fed tax rebate).

Eventually, I ended up ordering a M3LR just before the $3K price increase 2 weeks ago and it is expected to be delivered in June '22. Although the Tesla came out to be a bit higher than my budget, I believe it will pay off in the long run for two reasons: the Autopilot technology and Tesla's supercharger network.

I cannot believe how these traditional Auto companies can turn a blind eye on this huge inconvenience to customers. This and the charging infrastructure are the biggest bottlenecks facing the ICE manufactures. Until then Tesla will be reaping the benefits.

 

[Floydsox]

Telsa’s prices keep going up and deliveries keep getting further away lol, that means demand is huge.

5k miles so far I’m loving it. No gas, no oil changes, great warranty.

Super Chargers are great but home charging is much more convenient

 

[KenC]

The traditional dealer network charging insane EV markups is driving consumers to Tesla. I have been shopping for an Ioniq 5 and then RAV 4 Prime only to find all the dealers charging anywhere from $5K to $10 over MSRP. I also complained to Hyundai corporate but they don't seem to care My primary reason was the price point as I wanted to be below $45K (w/ fed tax rebate).

Eventually, I ended up ordering a M3LR just before the $3K price increase 2 weeks ago and it is expected to be delivered in June '22. Although the Tesla came out to be a bit higher than my budget, I believe it will pay off in the long run for two reasons: the Autopilot technology and Tesla's supercharger network.

I cannot believe how these traditional Auto companies can turn a blind eye on this huge inconvenience to customers. This and the charging infrastructure are the biggest bottlenecks facing the ICE manufactures. Until then Tesla will be reaping the benefits.

You're in SoCal, dealer gouging for high-demand vehicles is common. It's supply-demand. People want an EV, and the dealers will price them accordingly. In Tesla's case, they have no dealers, so Tesla prices them accordingly, or haven't you noticed all the price raises?

 

[stopcrazypp]

You're in SoCal, dealer gouging for high-demand vehicles is common. It's supply-demand. People want an EV, and the dealers will price them accordingly. In Tesla's case, they have no dealers, so Tesla prices them accordingly, or haven't you noticed all the price raises?

But for Teslas it's done nationwide, so if you live in an area with on average higher demand than the national average, it evens things out. Also you get to lock in the price on order (instead of surprises during delivery, seen plenty of stories of that for other high demand cars where dealers did that). Also takes out the negotiating that happens in the traditional car purchase.

 

[Willy’sEV]

As I have posted in another thread, buying the Tesla is a much better experience than going to the dealer and negotiating with the sales people. Also save myself an extra shower that day, used to have to take a shower when coming home from the car dealer to get the slime off.

 

[rnbetsy]

Buying online at a known price > going to a stealers.

 

[EVRider-FL]

You made the right choice, but when comparing prices, remember that EVs from companies other than Tesla and GM are still eligible for the $7,500 federal tax credit, and possibly additional state credits.

 

[bruce4000]

My son lives in Western Massachusetts and got a Rav4 Prime for $2k markup but got a $7500 tax credit which made it a good deal and can’t afford a MY. However Toyota is almost up to the 200k limit so that will be going away. Impressive that Tesla selling so well with a $7500 disadvantage. He ordered last October and got end of February, Toyota isn’t making very many of these. He likes it but saving up to buy a MY in a few years.

 

[goin2drt]

It was also a great side benefit to buying a Tesla. The dealWe network especially now is a joke. Once you buy a Tesla the traditional dealer experience is just stupid. It will never go away because of big money and unions but sure would love to see all manufacturers go to the Tesla model. Really no need for the old way.

 

[brancky3]

Same situation for me. I was going to buy an EV6 or Ioniq 5 but local dealers are $12k over MSRP.

 

[Shelburne]

Buying our M3 in 2020 was the best car buying experience of my life. After making an appointment, we went to a Tesla showroom near Boston. We went for a test drive. The Tesla employee asked us to bring it back in an hour! Around here, car salesmen freakout if you want to drive their cars for more than 15 minutes. You need more time to get an accurate feel for the car, which we were able to do. When we returned it, the sam Tesla employee asked us what we thought about it and then went on to tell us so much else about the car, but it was a very soft. We ordered ours as soon as we got home. Back then, the wait was only 6-8 weeks....the good old days.

 

[brancky3]

We ordered ours as soon as we got home. Back then, the wait was only 6-8 weeks....the good old days.

Hah, I waited less than 4 weeks and ordered February 2022. Just have to get lucky by calling Tesla and seeing if any similar builds are unallocated.

 

[santua]

The traditional dealer network charging insane EV markups is driving consumers to Tesla. I have been shopping for an Ioniq 5 and then RAV 4 Prime only to find all the dealers charging anywhere from $5K to $10 over MSRP. I also complained to Hyundai corporate but they don't seem to care My primary reason was the price point as I wanted to be below $45K (w/ fed tax rebate).

Eventually, I ended up ordering a M3LR just before the $3K price increase 2 weeks ago and it is expected to be delivered in June '22. Although the Tesla came out to be a bit higher than my budget, I believe it will pay off in the long run for two reasons: the Autopilot technology and Tesla's supercharger network.

I cannot believe how these traditional Auto companies can turn a blind eye on this huge inconvenience to customers. This and the charging infrastructure are the biggest bottlenecks facing the ICE manufactures. Until then Tesla will be reaping the benefits.

Congrats on joining the cult!
I am truly disgusted by what dealers are doing in today's market. I can understand a slight markup to cover yourself due to lower supply and selling fewer cars, but some of the markups are absolutely ridiculous.

 

[rpiotro]

Don't forget, for those of you talking about that $7500 tax credit you need to have more than $7500 in tax liability to take advantage of it. It is a credit. Not a rebate. I knew that going in when I bought a Leaf last year.

I just got my taxes back from my accountant. Because my wife and I are now both retired except for a little self employed side hustle I do our Federal taxes were almost $0. So, out the window. Along with the 30% credit for the charger. The good news is my Federal tax was almost $0.

 

[jbiggs2]

I loathe dealer markups as well. Over the years I have custom ordered 2 M class BMWs and paid sticker, but I've never paid over. I would imagine most on this board are in favor of capitalism and this is exactly how it works. Supply vs. demand. It sucks when you are on the high demand side, but that is where we are currently. Your option is to eat it or wait until the curve shifts, as it always does.

 

[texas_star_TM3]

The traditional dealer network charging insane EV markups is driving consumers to Tesla. I have been shopping for an Ioniq 5 and then RAV 4 Prime only to find all the dealers charging anywhere from $5K to $10 over MSRP. I also complained to Hyundai corporate but they don't seem to care My primary reason was the price point as I wanted to be below $45K (w/ fed tax rebate).

Eventually, I ended up ordering a M3LR just before the $3K price increase 2 weeks ago and it is expected to be delivered in June '22. Although the Tesla came out to be a bit higher than my budget, I believe it will pay off in the long run for two reasons: the Autopilot technology and Tesla's supercharger network.

I cannot believe how these traditional Auto companies can turn a blind eye on this huge inconvenience to customers. This and the charging infrastructure are the biggest bottlenecks facing the ICE manufactures. Until then Tesla will be reaping the benefits.

Tesla just changes the MSRP between $5k to $10k within a year... there's more fairness as everyone will pay them same price and no annoying haggling... but let's not pretend that Tesla ain't milking high demand/ limited supply either...

 

[brancky3]

Don't forget, for those of you talking about that $7500 tax credit you need to have more than $7500 in tax liability to take advantage of it. It is a credit. Not a rebate. I knew that going in when I bought a Leaf last year.

I just got my taxes back from my accountant. Because my wife and I are now both retired except for a little self employed side hustle I do our Federal taxes were almost $0. So, out the window. Along with the 30% credit for the charger. The good news is my Federal tax was almost $0.

Yeah, you have to pay federal taxes adding up to at least $7500 for the year to get the credit. Makes sense you didn't get it if retired.

 

[texas_star_TM3]

Congrats on joining the cult!
I am truly disgusted by what dealers are doing in today's market. I can understand a slight markup to cover yourself due to lower supply and selling fewer cars, but some of the markups are absolutely ridiculous.

but what if a dealer only sells 1000 cars annually because of limited supply/ chip shortage and they used to sell 2000 cars in a normal year? Assuming their costs/ expenses are the same ... they need to generate more profit with each of the cars sold to come close to prior year revenue...

 

[CyberGus]

Once you buy a Tesla the traditional dealer experience is just stupid. It will never go away because of big money and unions but sure would love to see all manufacturers go to the Tesla model. Really no need for the old way.

Bookstores will never go away, no matter what Amazon does! People want to browse, and feel the touch of paper, and

Oh wait

Borders files for bankruptcy, to close 200 stores

Borders Group Inc filed for bankruptcy protection and said it would close about one-third of its bookstores, after years of shriveling sales that made it impossible to manage its crushing debt load.

mobile.reuters.com

 

[kpinthebay]

Tesla just changes the MSRP between $5k to $10k within a year... there's more fairness as everyone will pay them same price and no annoying haggling... but let's not pretend that Tesla ain't milking high demand/ limited supply either...

Much rather the additional profit go direct to Elon and Co so they can reinvest into the company with more tech and options. Hell, he can take more bonuses for all I care. He deserves it.

We pay the $5k to $10k dealer markup and where does it go? To the fat manager who had no clue about the Ioniq5 features and had nothing to do with the development and production of the Ioniq.

Imagine during lean times walking into a dealer and trying to negotiate $10k under sticker. Tell them, you know there seems to be a shortage in my wallet. They pull a Will Smith on you and slap you upside the head.